The mood in eastern German companies brightened again slightly in March. The business climate index for the regional economy rose by 0.4 points to 88.1 points, according to the Ifo Institute in Dresden. Although the companies surveyed assessed their current situation slightly worse than in February, their expectations for the coming months were more optimistic.
In the manufacturing industry, the business climate deteriorated slightly. Although companies improved their assessment of the current situation slightly, they were still somewhat more pessimistic about the future than in the previous month.
Service providers with growing optimism
The mood in the service sector brightened overall. Although companies assessed their current situation as slightly worse, expectations for the coming months increased noticeably.
A positive trend was also evident in the retail sector: Both the assessment of the current business situation and expectations improved compared to the previous month.
Construction industry sends mixed signals
Mixed messages came from the main construction industry. While the current situation was assessed slightly better, business expectations fell slightly.
For the survey, Ifo does not ask companies about the reasons for their mood. The Ifo Business Climate for Eastern Germany is based on around 1,700 monthly reports from companies in various sectors. They are asked to assess their current business situation and state their expectations for the next six months. The Ifo Index is considered a very accurate early indicator for the further course of the economy.
Copyright 2025, dpa (www.dpa.de). All rights reserved
